Opened in 1937, the yard saw many contracts during its early years for vessels used on the Great Lakes and Canada's Atlantic coast. In 1986 the federal government asked Quebec to rationalize its shipyards, which saw MIL merge with Davie Shipbuilding in Lauzon; the Sorel shipyard was called M.I.L. Tracy (for Tracy, Quebec) and the Lauzon shipyard was called M.I.L. Lauzon.
Shortly after the merger, the new company, MIL Davie Shipbuilding closed the Sorel shipyard along with the Versatile Vickers (Canadian Vickers) shipyard in Montreal, resulting in a total loss of 1,700 jobs.